Page 9 - Building a Treasury Centre for Sustainable Growth
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Business Objectives

                        The location should align with the strategic expansion plan and business objectives. Although
                        Malaysia and Thailand also offer tax incentives for the setting up of treasury functions,  the pre-
                        existing controls on foreign exchange and fund transfers may have additional barriers to the
                        management of treasury activities. Therefore, we shall only focus on Singapore and Hong Kong
                        SAR tax incentives.

                        The tax  regime of Singapore and Hong Kong SAR are equally competitive. With its proximity
                        to Mainland China, Hong Kong SAR is a premier location for multinational corporations (MNCs)
                        looking to expand into Mainland China and Mainland China corporations looking to venture
                        overseas. Singapore’s competitive advantage lies in its extensive ASEAN networks and tax
                        treaties. Corporations looking to expand into ASEAN or South Asian countries might prefer
                        Singapore over Hong Kong SAR.

                                    1.  Strong economic links with other ASEAN countries

                                    2.  Political stability
                                    3.  Partnership with global banks
                                    4.  Extensive double taxation agreements

                                    1.  Strong economic links to Mainland China
                                    2.  Largest RMB offshore centre
                                    3.  Access to Greater China market

                                    4.   Over 60% of Mainland China’s FDI was made via Hong Kong SAR in 2018

                        Synergy with Operations

                        Companies prefer to set up Regional Treasury Centres (RTCs) closer to their other operations for
                        cost-efficiency and better control and more accurate forecast of cash and treasury needs.

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